Campaign Finance Bills in the 105th Congress: Comparison of H.R. 2183 (Hutchison -Allen), H.R. 3526 (Shays-Meehan), and Current Law

July 22, 1998
98-409GOV

As pledged by Speaker Gingrich, the House renewed consideration of campaign finance reform in May 1998. The principal bill is H.R. 2183, known as the freshman bipartisan bill, introduced July 17, 1997, by Messrs. Hutchinson and Allen. Selected floor amendments and substitutes will be in order. The legislation that has generated the most publicity in the 105th Congress has been the McCain-Feingold bill (S. 25), offered on March 19, 1998, as H.R. 3526 by Messrs. Shays and Meehan;1 this has also been offered as substitute amendment no. 13 to H.R. 2183 in the current debate. Table 1 highlights key differences between the two bills, and Table 2 summarizes and compares H.R. 2183, H.R. 3526, and current law.

98-409 GOV
Updated July 22, 1998
CRS Report for Congress
Received through the CRS Web
Campaign Finance Bills in the 105th Congress:
Comparison of H.R. 2183 (Hutchinson-Allen),
H.R. 3526 (Shays-Meehan), and Current Law
Joseph E. Cantor
Specialist in American National Government
Government Division
Summary
As pledged by Speaker Gingrich, the House renewed consideration of campaign
finance reform in May 1998. The principal bill is H.R. 2183, known as the freshman
bipartisan bill, introduced July 17, 1997, by Messrs. Hutchinson and Allen. Selected
floor amendments and substitutes will be in order. The legislation that has generated the
most publicity in the 105th Congress has been the McCain-Feingold bill (S. 25), offered
on March 19, 1998, as H.R. 3526 by Messrs. Shays and Meehan;1 this has also been
offered as substitute amendment no. 13 to H.R. 2183 in the current debate. Table 1
highlights key differences between the two bills, and Table 2 summarizes and compares
H.R. 2183, H.R. 3526, and current law.
Table 1. Key Differences between Freshman and Shays-Meehan Billsa
Subject
Party soft
money
Freshman bill
Ban inter-state party
transfers
Non-party
soft money
No provision
Shays-Meehan
Ban state party soft money
spending on certain
activities at some times
* Codify Beck decision
* Increase disclosure
* No party funds to taxexempt groups
1
The McCain-Feingold legislation has been revised twice in the 105th Congress. The first
revision (September 29, 1997) was the subject of three failed cloture votes in the fall of 1997, on
October 7, 8, and 9. The second revision (February 1998) was in the form of a floor amendment
(to S. 1663), as modified by the Snowe-Jeffords amendment. (A cloture vote on this version
failed in the Senate February 26, 1998.) The Shays-Meehan bill is based on the current version
of S. 25, considered by the Senate in 1997, not February’s modified floor amendment.
Congressional Research Service ˜ The Library of Congress
CRS-2
Subject
Issue advocacy
Hard (federal)
money
Wealthy
candidates
Independent
expenditures
Foreign
nationals
Fed. bldg. ban
on fundraising
Enforcement
Freshman bill
Disclosure only (of
expenditures, not sources
of funds)
* No party coordinated
expenditure limits
* Double individual
aggregate limit
* Index contribution limits
No provision
Shays-Meehan
Redefine express advocacy
(apply all fed. limits,
prohibitions & disclosure)
Minor increases in limits on
individual giving to parties
No provision
No party spending for
candidate over $50,000
* Tighten definitions
* Ban party independent &
coordinated spending for
same candidate
Ban party soft money from
foreign nationals
Include soft money in ban
No provision
Increase FEC authority
No provision
No provision
Table 2. Comparison of H.R. 2183, H.R. 3526, and Current Lawa
Current law
Contribution limits not
inflation-indexed
To state & local parties:
$5,000 per year
To national party:
$20,000 per year
Aggregate annual limit:
$25,000 to parties,
candidates, & PACs
Contribution limits not
inflation-indexed
Coordinated expenditures
Party spending for general
election candidates limited
(1998: House race=$65,100;
$130,200 in 1-district state)
H.R. 2183
(Hutchinson-Allen)
SOURCES OF FUNDS
PACs
Indexes limits by CPI every
presidential election year,
rounded to nearest $100
Individuals
No provision
H.R. 3526
(Shays-Meehan)
No provision
$10,000 per year
$25,000 per year
No provision
$25,000 to all party
committees, plus $25,000 to
candidates & PACs
Indexes limits by CPI every
presidential election year,
rounded to nearest $100
Parties
Repeals coordinated
expenditure limits
$30,000
No provision
No provision
CRS-3
Current law
Contribution limits not
inflation-indexed
No limits on candidate
spending from personal funds
H.R. 2183
(Hutchinson-Allen)
Indexes limits by CPI every
presidential election year,
rounded to nearest $100
Candidates
No provision
H.R. 3526
(Shays-Meehan)
No provision
Bans party coordinated
expenditures for House
general election candidates
who exceed $50,000 volunt.
limit on personal/family
funds; fines candidates who
pledge to abide & exceed
Law bans personal use of
No provision
Codifies regulations on
campaign funds, as defined in
permissible use of campaign
FEC regulations
funds
INDEPENDENT EXPENDITURES
Prohibits cooperation &
No provision
Tightens definition of what
coordination of spenders with
constitutes coordination &
candidates
cooperation
Requires filing within 24
No provision
Increases frequency of
hours of $1000+ in last 20
disclosure of large amounts
days of election
close to election
Based on 1996 Colorado
No provision
Bans parties from making
ruling, parties may make
both coordinated & indepindependent expenditures for
endent expenditures for a
candidates (no limit)
general election candidate
SOFT MONEY
Party soft money
No limits on national party
Bans national parties from
Bans national parties from
receipt of soft money
soliciting, receiving,
soliciting, receiving,
directing, transferring, or
directing, transferring, or
spending soft money
spending soft money
State parties must follow
No provision
Bans state/local party soft
allocation formulas in FEC
money for federal election
regulations for determining
activity: registration drives in
appropriate share of hard &
last 120 days of fed. election;
soft money for mixed
voter ID, get-out-the-vote
(federal-state-local) activities
drives, & generic activity if
federal candidate on ballot; &
messages referring to fed.
cand. with intent to influence
election; allows soft money
on solely non-federal
activities
Inter-state transfers
Bans transfers of nonNo provision
No provision
federally-permissible funds
between state parties
No provision
No provision
Bans use of soft money to
raise funds
CRS-4
Current law
Disclosure by national parties
(1991 FEC regs.)
Contributions to party
building funds are exempt
from contribution definition
No provision
Per Beck & other rulings,
dues-paying non-union
members have right to deny
political use of their funds
No union or corporate
disclosure for exempt
activities, except for express
advocacy internal
communications above
$2,000 per election
No provision
FECA NOT APPLICABLE
* Full coverage (disclosure,
source limits, prohibitions)
Based on court rulings, only
spending on communications
that use express advocacy
language (e.g., “vote for” or
“defeat”) are subject fully to
FECA
H.R. 2183
(Hutchinson-Allen)
No provision
No provision
Candidate soft money raising
Bans fed. candidates or
officials raising: soft money
for fed. elections; money
from sources beyond fed.
restrictions in nonfed. races;
& soft money for messages
referring to fed. candidates
Exempts federal officials’
own non-federal races
Exempts attendance at state
party events in home state
Non-party soft money
No provision
No provision
Tax-exempt activity
No provision
ISSUE ADVOCACY
No provision
H.R. 3526
(Shays-Meehan)
Codifies & increases
disclosure requirements
Removes building fund
exemption for national parties
Prohibits federal candidates
& officials from raising soft
money for federal election
activity (see above)
Exempts federal officials’
own non-federal races
Exempts attendance at state
party events
Requires union adequate
notice to dues-paying nonmembers of rights to deny
political use of funds
Requires disclosure of all
exempt activities (but incl.
only those internal
communications that refer to
fed. candidates), once over
$50,000 aggregate per year
Bans party fundraising or
giving to tax-exempt groups
Expands express advocacy
definition (hence triggers full
FECA coverage) as
communication for or against
candidate by: explicit
language that in context can
have no other reasonable
meaning; paid broadcast
citing a candidate within 60
days of election; or
unambiguous advocacy, taken
as whole with limited
reference to external events
CRS-5
Current law
* Disclosure rules
None
Expenditure defined in FECA
as money spent to influence a
federal election
H.R. 2183
(Hutchinson-Allen)
Requires disclosure of
expenditures on radio or TV
communications referring to
House/Senate candidates (by
name, representation, or
likeness), once over $25,000
for 1, or $100,000 for all,
candidates per year
Exempts corporate/union
member communications &
nonpartisan voter drives
No provision
H.R. 3526
(Shays-Meehan)
Requires full disclosure of
spending & receipts, as
FECA-covered activity
Exempts nonpartisan voter
guides
Amends definition to incl.
payment for message with
express advocacy, or that
refers to clearly identified
candidate, is coordinated, &
seeks fed. election influence
FOREIGN NATIONAL MONEY
Bans contributions &
No provision
Bans direct or indirect foreign
fundraising from foreign
national contributions,
nationals in connection with
including soft money, in
U.S. elections; exempts
connection with any election
permanent resident aliens
(leaves green card exemption
(with green cards)
in law)
FEDERAL ELECTION COMMISSION
Disclosure
Optional electronic filing
Requires electronic filing by
Requires electronic filing by
all committees above $50,000 all committees over FEC-set
in receipts & expenditures per level, with 24-hour Internet
year, using FEC-provided free posting
software
Timing of candidate reports
Require monthly reports in
No provision
In election year: quarterly,
election year, but in lieu of
pre-primary, pre- & postNov. & Dec. reports, require
general election
pre- & post-general & yearend reports
Timing of non-candidate
Require monthly, preNo provision
reports
primary, & pre- & postIn election year, either: (1)
general election reports in
quarterly, pre-primary, & pre- election year, but in lieu of
& post-general election; or
Nov. & Dec. reports, require
(2) monthly, with pre- & post- pre- & post-general & yeargeneral & year-end reports in
end reports
lieu of Nov. & Dec.
Itemization requirements
Excludes best efforts
- Bans candidate deposit of
Contributions of over $200
exemption regarding
over $200 contributions
must incl. name, address,
identification of occupation & without required ID
occupation, & employer,
employer, for contributions
- Lowers itemization
unless best efforts are made
aggregating over $200 per
threshold to $50 for
to obtain information
year
contributions
CRS-6
Current law
FEC may audit only if it has
reason to believe a violation
occurred
FEC may initiate enforcement
action with “reason to
believe” a violation may have
occurred
Penalties: maximums are
prescribed in election law
Law specifies timetable for
enforcement actions
FEC may refer suspected
violations to Justice Dept.
only if probable cause to
believe a violation has
occurred
Bans solicitation of campaign
funds, as defined, from
federal govt. buildings
Bans House franked mass
mailings 90 days from
election
Requires disclaimers on
broadcast & print ads
No provision
a
H.R. 2183
(Hutchinson-Allen)
Enforcement
No provision
No provision
No provision
No provision
No provision
MISCELLANEOUS
No provision
No provision
No provision
No provision
No provision
No provision
No provision
No provision
Abbreviations used in these tables:
CPI = Consumer Price Index
FEC = Federal Election Commission
FECA = Federal Election Campaign Act
ID = identification
PAC = Political Action Committee
H.R. 3526
(Shays-Meehan)
Allows random audits of
campaigns within 12 months
after election
Changes FEC criterion to
“reason to investigate”
standard
- Increases penalties for
violations
- Allows automatic late filing
penalties
- Allows equitable remedies
in conciliation agreements
Expedites FEC enforcement
procedures late in election
Allows FEC referrals at any
time
Includes raising soft money in
ban on solicitation from
government buildings
Bans franked mass mailings
in Member’s election year
Enhances disclaimer
requirements
Bans false representation to
raise funds
Bans non-candidate comm.
use of candidate names
Bans donations by those 17
years & younger